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#BITCOIN: Another Big Dump Incoming? | ETH, ADA, DOT, DOGE Analysis

14 May, 2021 Martin Petkov
BITCOIN: Another Big Dump Incoming

Hello and welcome, everyone! It's Martin here with CryptoGains. Happy Friday! We're beginning our discussion today with a look at the net transfer volume to and from exchanges for Bitcoin, and what we experienced here was a very, very significant spike that we haven't seen for as long as about a year. We haven't seen such a huge spike of inflow to exchanges in Bitcoin since 2020. And typically, this is an early warning that a big dump or a big correction in Bitcoin may happen.

This did indeed happen but, however, this particular article where I'm getting the data from suggested Bitcoin actually held quite well considering the huge inflow. So it was not as bearish as something like this would usually be. However, there are other warning signs, and that is particularly the fact that a lot of whales are depositing their funds to exchanges. Potentially, this can be because they anticipate beginning to sell their Bitcoin holdings, which could mean short-term volatility and potentially long-term good buying opportunities for Bitcoin.

Conversely, Dogecoin performed very strongly because Elon Musk suggested that Tesla is considering still supporting Dogecoin as a method of payment and working on their network with their development team to improve efficiency. Consequently, Dogecoin surged quite substantially.

Other interesting developments come from Polkadot, which is adding parachain auctions and crowd loans to Kusama and Westend, which, basically, without going into too much detail, means that Polkadot is expanding its functionality substantially, making it even more attractive as a blockchain network.

And now let's move to the charts and see how we can trade some of these insights, also considering that there are developments with Cardano, which is reaching new all-time high territory. But let's begin with Bitcoin. The critical level for Bitcoin is $50,300. Above that level, a good opportunity to buy Bitcoin, with targets at $51,350 and then $53,000, which is the level around which this significant drop happened. So it's going to be a reasonable target on the upside. Conversely, below $50,300, the selling pressure is likely to prevail, with the nearest targets at $49,000 and $47,800. 

Now let's take a look at Ethereum. The critical level to keep an eye on in Ethereum is $3,895. Above that level, we have a good opportunity to buy Ethereum, with targets at $4,025 and $4,150. On the downside, if we break below that substantial support level at $3,895, we could see declines further down to $3,745 and $3,625.

And, now, let's move to Cardano, which is another solid performer. For Cardano, as long as we're above $1.83, the upside or the bullish sentiment prevails, with targets on the upside at $1.97 and then, subsequently, into new all-time high territories above $2.00. Conversely, should we break below $1.83, we could see declines to $1.73 on the short side, where you could be initiating short positions.

And, now, let's move to Polkadot. As long as Polkadot remains over $40, there are good opportunities to buy, with the first target at $42.50 and then $44. Conversely, below $40, the downside pressure is likely to prevail, with targets at $39 and then $37.50.

And, finally, let's take a look at Dogecoin. For Dogecoin, the critical pivot point is $0.529. Above that level, we have a good opportunity to buy Dogecoin, with targets at $0.565 and $0.59. Conversely, below $0.529, it's more than likely that we're going to see selling pressure, with targets on the short side at $0.505 and $0.48.

Thanks for joining me today. Keep learning with the video education section and the CryptoGains Market Insights subsection. Remember to join the Crypto Signals Made Easy channel, where we're sharing lots of insightful articles and trading ideas. Trade wisely, and I'll see you soon. 

Have a good weekend!

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